- CCB Intensifies efforts to drive the co-competition of SMEs

To Co-competition – 2006 Forum on the Development of SMEs in Pearl River Delta, Yangtze River Delta and Bohai Rim was held in Shanghai recently. CCB, as the co-host of this event, presented our operational philosophy and models targeted at SMEs and introduced our “Easy Loan” solution, which just won the Best Financing Solution to SMEs award at China Financing Forum for SMEs on December 12, 2006 and also attracted great attention from the participants.

As a public company, CCB adheres to the customer-centric concept, regards the improvement of financing services for SMEs as important measures to support the development of SMEs and accelerate the adjustment of credit structure and customer structure, and includes SME business into the outline of strategic growth.

CCB has been earnestly carrying out the Guidelines for Banks on Doing SME Business issued by China Banking Regulatory Commission (CBRC). On the basis of improving the financing mechanisms for SMEs and in consideration of the development and financing needs of SMEs, CCB developed a number of new policies and measures supporting the growth of SME business. In terms of assessing customers, CCB sets up a special credit rating system targeted at SMEs while taking consideration of the incompleteness of financial information and credit records of SMEs. The system stresses on the analysis and assessment of customers from the soft part and can have a thorough and accurate understanding of the risk status of SMEs. In the front of business process, we have optimized the loan approval process in a bid to offer fast and convenient financing services to SMEs in accordance with their needs for short-term, frequent and fast financial services. The prices of loans are determined based upon comprehensive risks including the guarantees and the cooperation status with CCB and other factors. Therefore, the interest rates are more flexible and can better meet the needs of SMEs. We have set up a special system of statistics and indicators and information management systems to monitor the operation of financial services for SMEs. A regular reporting system was created. In terms of performance evaluation, we have set up an incentive and restraint mechanism adapted to the culture of issuing credits to SMEs. The loan business for SMEs will be independently evaluated. The loan lenders with outstanding performance will receive positive incentives so as to motivate the enthusiasms of employees working on SME business.

On the basis of the above measures, to resolve the financing difficulties faced by SMEs, CCB intensified product innovation and develop two types of loan products customized for SMEs – Easy Loan and ‘Loan of Growth’ to meet the financing needs of SMEs at different stage of development. For SMEs that cannot offer complete financial information or meet the credit line, CCB develop ‘Easy Loan’. When the effective mortgage is guaranteed, there will be not further threshold and SMEs may obtain credit support from CCB. For fast-growing SMEs with clear property rights, complete financial information and good credit records, CCB offers ‘Loan of Growth’. Based upon the rating of the enterprise, CCB may offer fast and continuous credit supports across the entire process.   

Based on the life cycles and financing needs of different enterprises, CCB developed different line of services for startups, fast-growing and mature SMEs. Our line of products include all financing products, online banking, sales and settlement network, call center for corporate customers, foreign exchange funds, financial consulting, audit consultation, strategic advisory services and other intermediary services and products. In addition, we also offer loans for individuals to start up their business.

To improve financial services for SMEs, CCB is developing professional, standardized and comprehensive models and mechanisms for the operation of financial services for SMEs and realize the professionalism of the service departments and teams. CCB also learned from the good experience of international counterparts and employed six sigma management tools to unify service processes and standards, standardize products and pricing, and standardize the financial products and service process for SMEs. CCB will give priority to the development of ‘integrated’ services for SMEs, who may enjoy the integrated services at CCB, including advisory and financial management services.

CCB’s support to SMEs is strong and obvious. In the era emphasizing on competition and cooperation, we have created a good credit environment for SMEs to embrace co-competition and challenges.